Report by Director of Operations and Programmes

A4

CITY OF WESTMINSTER

SCHOOLS’ FORUM 26thMARCH 2018

REPORT BY DIRECTOR OF OPERATIONS AND PROGRAMMES

COMPARISON BETWEEN NATIONAL FUNDING FORMULA AND LOCAL FUNDING FORMULA 2018/19

Purpose of the report
This report informs Schools’ Forum of a comparison between the National Funding Formula (NFF) and the Local Funding Formula (2018/19).
FOR INFORMATION

1INTRODUCTION

1.1Schools’ Forum have requested comparative information on the National Funding Formula (NFF) and the Local Funding Formula that has been submitted to the Education & Skills Funding Agency (ESFA).

1.2ESFA had sent schools and local authorities illustrative workings of the National Funding Formula via secure access on COLLECT. However, they had provided no working spreadsheets so that these could be updated for pupil changes and characteristics. ESFA’s processes have not been updated to provide an option to fully implement NFF or partly implement NFF.

1.3The schools’NFF will provide local authorities with per pupil funding of at least £3,500 for all primary schools and £4,800 for all secondary schools, that have pupils in years 10 and 11 in 2019/20.

2SCHOOLS NFF AND APT COMPARATIVE ANALYSIS

2.1Schools’ Forum reports and the individual school’s illustrative workings confirm adjustments for SEN units (positive) and reductions for the removal of reception uplift (negative). These were applied to 2017/18 as if they had been implemented, but both have been implemented in 2018/19 APT reports for Westminster.

2.2The most significant difference is that for 3 growing recoupment academies that were showing on the ESFA’s list had projected growth as if full, even if that growth was in future years beyond 2019/20.

2.3In the NFF there is a lump sum assumption of £110k. But the NFF has applied the Area Cost Adjustment (ACA) to this factor and the information shown is why we have set the £130k lump sum budget in 2018/19 (as agreed at January School’s Forum.

2.4Appendix A shows a comparison between the NFF and local school funding formula (APT) for 2018/19 based upon a lump sum of £130k.

2.5The NFF calculation for 2018/19 is 256 more pupils. This difference equates to additional funding of £1,518,780 in the NFF. However, the correct comparison would be £111,514,245 compared to £111,400,000. The extra 256 pupils are within the 3 growing recoupment academies or any adjustment that ESFA may apply to academies numbers without informing the local authority.

2.6In column H the budgets represent the local authority formula budget would have been set if Schools’ Forum on a £130k lump sum for all schools. Column I represents the per pupil MFG budget that would have been set after application of the -1.5% per pupil calculation.

2.7The impact of MFG on individual budgets, particularly protections at high levels in some schools and low in other schools, is preventing LAs making significant moves towards the NFF. Column J shows the 18-19 NFF budget that would have been set by removing all MFG. Column K shows the 2018-19 NFF per pupil budget.

2.8Column L shows the changes to Per Pupil Budgets for each schools on implementing NFF without MFG. Column M is the most significant item as it notes the percentage per pupil gains and losses under the NFF having removed MFG protection.

2.9We wish to draw attention to the percentage gains and losses as highlighted in Appendix A.

Andrew Tagg

Executive Director – Children’s Services – Director of Operations and Programmes

Melissa Caslake

Bi-Borough Executive Director – Children’s Services

Contact officers:

Nick Grey, Finance Manager–Education & Capital

Tel: 020 7361 3152E-mail:

Feroza Begum, Senior Finance Manager – Schools Finance

Tel: 020 7641 4405E-mail:

Background Papers:

EFSA – APT and NFF Illustrations 2017-18.

ESFA - National Funding For Schools and High Needs

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